Cycling industry still 'appealing' to investors, despite turbulent post-Covid period
Posted on in Business News , Cycles News
The cycling industry may have experienced one of its most turbulent periods in recent history, but it still represents a great opportunity for investment, according to a report in Cycling Weekly.
After the UK cycling boom during the global pandemic, the post-Covid period has seen brands suffer major losses or go out of business, bike shops hit by the subsequent cost of living crisis, and other areas of the industry affected.
But the magazine spoke with Dr Gordon Fletcher, associate dean of research and innovation at Salford Business School, who believes the sector still represents a major attraction for investors.
"That's the appeal, isn't it, in a one sentence nutshell," Fletcher said, as he explained that the industry’s ability to reach all corners of society was what made it such an attractive proposition.
"It’s the idea that there is an entire sector if you like, I was struggling for a word because I was going to say sport, but then of course, it's not just a sport, it's a commuting device, it's a leisure device, it's something that can take many different forms and reach different people."
"For example, the associated kit that goes with cycling all adds to the commercial interest of it," he added. "Because it means that there's a commitment from consumers.
"But equally, because those consumers are such a wide range of people, it means that you've got many different things that you can go for in terms of individual products, but you can potentially pivot within that sector, relatively easily.
"And you can pivot towards luxury items or away from luxury… It does make it quite fascinating, because there's so many moving parts to all of this."
Inevitably, cycling always generates discussions around sustainability, particularly relating to transport. Fletcher explained that the rise in popularity of e-bikes, along with urban bike hire schemes, were two areas that are likely to generate further interest due to the ability to target commuters across the country.